ZENITHBANK

Zenith Bank (holding-company structure) trades at 0.97x book and 4.82x earnings — below both peer-median multiples (P/B 1.30x, P/E 6.10x) and our blended fair value of ₦156.62 — despite delivering a group ROE of ~20–22% and a PAT of ₦1.04 trillion on FY2025 revenue of ₦4.19 trillion, making it one of the highest-quality large-cap franchises on the NGX. The justified P/B of 1.15x (derived from ROE ~20%, CoE 18%, g 4%) confirms intrinsic value above the current price even under conservative assumptions, and the 8.2% dividend yield provides a meaningful income floor while investors wait for re-rating. With the stock sitting at essentially book value, the market is ascribing near-zero franchise premium to a bank that has consistently compounded equity at well above its cost of capital.

Verdict published 2026-08-18 · fundamentals through FY2025 · reviewed as the data changes